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(1) Introduction of high efficient process plant at Paper Factory

PT Fajar Surya Wisesa Tbk., Indonesia

Kanematsu Corporation, Japan

Basic Concept

• Our customer, Fajar Paper (second biggest paper manufacturer in Indonesia) is expanding a new line (1,000 ton/day) in the existing factory.– Old Corrugated Cartons (OCC) process

• We bring Japanese energy efficient technology to this part, and will reduce the power consumption for approx. 10% (kWh/t basis)

• New equipment is now under construction by applying JCM scheme.

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3

80

%

( Existing System )

( New System to be installed)

How to make energy efficiency ?

• Energy Efficiency by total system design;

– Coarse screen process ( fractionater ) : 20%

– High.C., Middle.C., Low.C. : 3 grades cleaners

only Middle.C., Low.C., : 2 grades cleaners

• Energy Efficiency by Individual Equipment;

– Pulper : 1st generation Helix Roter was installed 5 years ago, 2nd generation 2 years ago,

Now, 3rd generation Helix Roter will be installed

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Consortium Scheme

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Kanematsu- Project Management

Fajar Paper- Construction of new

factory line- Management of

operation

Nomura Research Institute, Ltd.- MRV methodology

Aikawa Iron Works Co., Ltd.- Designing and manufacturing of machine and equipment

Local Contractor- Construction and Installation

• We have structured a consortium. Each entity has following role;

Estimated IRR and CO2 Reduction( according to JCM Feasibility Study )

• We have estimated IRR;– Initial Investment : approx. US$ 12 million– Yearly maintenance cost : approx. US$ 400,000– IRR during depreciation period : 14.8%

• We have estimated CO2 emission reduction;– Reference Emission : 83,938 tCO2/year– Project Emission : 69,054 tCO2/year– Emission Reduction : 14,884 tCO2/year

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• Deforestation is due to socio-economic difficulty.

• We reduce deforestation by improving livelihood of communities.

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(2) Boalemo REDD+ Demonstration Project

Boalemo District Government

Gobel Group, Indonesia

Kanematsu Corp., Japan

Boalemo District Governor (“BUPATI”)and our REDD+ project team

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Gorontalo Province, Indonesia

9Sulawesi Island Gorontalo Province

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Deforestation driver of Gorontalo is “Slash & Burn” of Corn agriculture

• Corn is major industry of Gorontalo, because the provincial government is providing subsidies to the corn farmers.

Forest area size (ha)

Deforestation of Gorontalo( Remote Sensing Anlysis )

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1990 2000 2010

Forest 779,832 710,587 592,205

Non-Forest 43,213 112,458 230,547

1990 2000 2010

Boalemo District

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Reference area : Forest area of Gorontalo Province

• We make REL (Reference Emission Level) by deforestation trend of Gorontalo Province.

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Project Boundary :Forest area of Boalemo District

• Project boundary is forest area 88,815ha

• We monitor the forest area every year, and compare with REL, then, we will know the emission reduction amount per year.

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Five (5) demonstration cacao farms

• As a part of REDD+ activities, for each sub-district, we have set up demonstration farm to show how to produce high quality cacao.

Cacao Program

• By providing “Capacity Building” and “Value Chain”, we help farmers to shift from CORN to CACAO.

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Training of cacao production

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• More than 20 farmers get together in the demonstration farm, then, farmers will broaden the knowledge to local community.

Seed Bed (Nursery) Demonstration Farm

High Quality Chocolate made from Sulawesi Island

• Dari-K, a Japanese chocolate company in Kyoto, is importing fermented cacao beans made by Sulawesi farmers.

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Training at the demonstration farm

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We provide knowledge of cacao.

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Fermentation

Sun-dry

Bean count

Moisture content

Waste content

Agroforestry

Nursery

Grafting

Pest&disease

Pruning

Fertilizing

Replanting

Some corn farmers have already shifted from Corn to Cacao

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Kanematsu

Gobel

BankFarmersBoalemo

Purchase Contract Technical Support

SeedlingsMicro-finance

Repayment

REDD+ MRV and marketing of Cacao

Trading

Project Vehicle

Cacao Market

REDD+ and Cacao Safeguard program

We provide capacity building, develop value chain, and do MRV.

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Boalemo

Forest Area

Non-Forest Area

“Slash & Burn” of CORN

REDD+ team support Cacao farmers.

2000 2010 2020

2020

Cacao Farming

With REDD+ project, we may keep the forest area size

Concept of our projectWithout REDD+ project, deforestation will increase

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Estimated CO2 Emission Reduction

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CO

2 E

mis

sio

n

REDD+ project started

With REDD+ project, we may keep the forest area size

Without REDD+ project, deforestation will increase

86,520t-CO2e/year

2011 2015 2030

North Gorontalo District

PohuwatoDistrict

BoalemoDistrict

GorontaloDistrict

Bone BolangoDistrict

Sub-National REDD+

We apply same MRV to whole Gorontalo Province25

Thank you for your attention !Shinsuke_Yazaki@kanematsu.co.jp

Boalemo farmers produce high quality cacao, and bring prosperity to the community. We hope this program expands over whole Gorontalo.26